Risk of Breaching Financial Covenants under a Lending Commitment Agreement
First written in FY2023-Q3. 1 of 3 entries say "Materialised", first in FY2023. Latest entry: FY2024-Q1.
The whole theme swung hardest in 2017: 8 of 64 companies on the "Worse" side.
45 other companies' latest entry also says "Restated".
- FY2024-Q1RestatedAnnual report
「The Group is in breach of these financial covenants in the previous consolidated fiscal year, but is vigorously pursuing improvements in productivity and its financial position in its current and future plans. It has confirmed with its financial institutions that this does not constitute grounds for termination of the lending commitment agreement.」
The filing continues to describe the breach of the financial covenants in the previous consolidated fiscal year and the response, including confirmation from the financial institutions that this did not constitute grounds for terminating the agreement. - FY2023MaterialisedAnnual report
「The Group is in breach of these financial covenants in the current consolidated fiscal year, but is vigorously pursuing improvements in productivity and its financial position in its current and future plans. It has confirmed with several of its principal financial institutions that this does not constitute grounds for termination of the commitment agreement.」
The filing stated that the financial covenants under the lending commitment agreement were actually breached in the fiscal year ended March 2023. At the same time, the Company stated that it had confirmed with its financial institutions that this did not constitute grounds for terminating the agreement. - FY2023-Q3First statedAnnual report
「In addition, the lending commitment agreement contains financial covenants requiring that ordinary profit in the consolidated income statement for the fiscal year ended March 2023 not be a loss and that net assets in the consolidated balance sheet be maintained at 75% or more of the previous fiscal year’s level. The Group was not in breach of these financial covenants as of the end of the third quarter of the current fiscal year.」
The ¥1,210 million overdraft and commitment line facilities are subject to financial covenants requiring ordinary profit for the fiscal year ended March 2023 not to be a loss and net assets to be maintained at 75% or more of the previous fiscal year’s level. The covenants were not breached as of the end of the third quarter.